Tourism Down 3.5%, Air Arrivals Up, Cruise Down

[Updated with full report] Today Minister of Business Development and Tourism Patrice Minors provided information on the tourism statistics for the first six months of 2011.

The total amount of visitors to Bermuda for the second quarter of 2011 was down 3.5% with 243,858 tourists visiting the island during this period, compared to 252,734 in 2010 – which Minister Minors said is primarily due to a decline in cruise and yacht arrivals.

The air visitor category increased for the second consecutive quarter of 2011, as air arrivals rose almost 4%, with a total of 80,462 visitors flying into the island during this period, up from 77,512 in 2010.

All countries of origin showed increases this quarter, except Canada, which experienced a 13% decline. Visitors from the US, UK, Europe and the rest of the world conversely all showed increases of 7%, 1%, 8%, and 5% respectively. Cruise visitation in the second quarter of 2011 dipped by approximately 10,000 passengers ending with 161,036 cruise visitors for the quarter.

Minister Minors’ full statement is below:

Good morning ladies and gentlemen,

I am pleased to report, as I deliver the tourism visitor statistics for the first six months of 2011, that Bermuda continues to experience modest and encouraging gains in arrivals for the year.

The global economic downturn is still very evident in all of the major economies, especially our key target markets of the USA and the UK, but we continue to achieve our fair share of business in these very difficult times.

The total amount of visitors to Bermuda for the second quarter of 2011 was down 3.5% with 243,858 tourists visiting the island during this period, compared to 252,734 in 2010 which is primarily due to a decline in cruise and yacht arrivals.
I am however very encouraged that the important air visitor category increased for the second consecutive quarter of 2011. Air arrivals rose almost 4%, with a total of 80,462 visitors flying into the island during this period, up from 77,512 in 2010.

Air Arrivals have been showing a positive turnaround for the first six months of 2011.

The island has experienced gains in five out of the first six months of the year, May being the only down month with 26,913 arrivals or 4%. April’s gain of 13%, or 20,481 arrivals, was an extremely strong showing. The month of June increased 5.3% to 33,608 arrivals, buoyed primarily by an increase in group business to the island.

The period January to March 2011 was up by 6.8%. There were 30,826 air arrivals compared to 28,863 in 2010.
The period April to June 2011 was up by 3.8%. There were 80,462 air arrivals, compared to 77,514 in 2010.
The first two quarters of the year represent the first occasion of two quarters of consecutive growth since the January to June period of 2005. This clearly represents an uptrend, or seeds for optimism for turning the corner, but there is still a long way to go.

All countries of origin showed increases this quarter, except Canada, which experienced a 13% decline. This can be attributed to the decrease in air service from this region, as Westjet reduced their Toronto flight scheduling from daily in 2010 to three times a week in 2011.

Visitors from the US, UK, Europe and the rest of the world conversely all showed increases of 7%, 1%, 8%, and 5% respectively. Cruise visitation in the second quarter of 2011 dipped by approximately 10,000 passengers ending with 161,036 cruise visitors for the quarter.

The 6% decline, year over year, was expected as the Norwegian Dawn started its Bermuda season late due to being dry docked for the month of May, This has resulted in five less sailings of this ship during this period.

The Norwegian Dawn will however extend her season to the end of October making 22 calls for the year, the same as in 2010. We are expecting an increase in cruise visitation with additional ships added to the second half of the year which is projected to be a record year for cruise passenger arrivals.

Yacht arrivals declined by roughly 40% in the second quarter, mainly due to the fact that the Newport to Bermuda event that was staged in 2010 drew a significant number of yachts. A total of 2,360 yachtsmen sailed to the island down from 3,927 yachtsmen in the first quarter of 2010.

The nine largest Bermuda Hotel Association (BHA) member hotels, representing 75% of the hotel inventory have reported a 3% increase in room occupancy for the second quarter, ending June 2011, to go along with the 3% increase reported in the first quarter.

The actual occupancy percentages were 63%, 75% and 86% for April to June, compared to 57%, 76% and 83% for the same period in 2010.

The pace report for the next three months, that is advanced bookings as at June 30, 2011, reveals that July is up 6%; August is up 19% and September is pacing up 8%.

When looking at the result for the next six months, till year-end, these hotels are collectively pacing 6% ahead for the period June to December 2011 – yet another modest and positive sign of upward progress.

I’d now like to turn my attention to the progress with the National Tourism Plan.

I am pleased to report that the Tourism Board continues to work diligently to formulate a document that represents the full, comprehensive input, of all stakeholders and rather than being rushed, encompasses a truly balanced view of all the crucial issues that needs to be properly addressed.

As you are aware, the Board, along with the widest cross section of stakeholders met on April 29 for a two-day retreat at the Fairmont Hamilton Princess Hotel.

All of the discussion highlights were fully summarized and a series of ‘hot topics’ and policy decisions were identified as those that required a comprehensive, qualified, view from the Board.

The topics ranged from branding; marketing; hotel development; airlift and cruise balance; gaming; tourism authority; service standards and product; and entertainment. The policy issues that were tackled included Hotel Concessions; Immigration; residence and property taxes.

Over the past month small teams of the Board immersed themselves in all of the background study and work that covers these myriad of issues that have been discussed in many different ways over the years. The Board’s objective will be to formulate a document of ‘Key Strategic Imperatives’ that represents the qualified view of the Board.

These imperatives are to represent what is considered to be extremely crucial components of the ultimate National Tourism Plan. It is anticipated that this will be presented to the Cabinet within the next six weeks to get the ultimate buy in of my Cabinet colleagues.

A series of town hall meetings, public panel discussions and stakeholder engagements will occur in early September where these imperatives will be presented to the public. It is my intention to lay these fundamental proposals in parliament when it resumes in November.

In the meantime the Bermuda Department of Tourism team continues the significant work in raising the current level of business for all hotels and remains committed to communicating all of the actions, initiatives and work done on behalf of the industry.

I am happy to report on the continued strong sales and marketing efforts to promote tourism that are currently taking place in North America. These efforts cover multiple channels via advertising, online interactive, public relations and, of course, the work of our sales team.

From an advertising standpoint, Bermuda is maintaining a high profile presence in North America. Currently there are 13 magazine insertions in the market, including such upscale national titles as Conde Nast Traveler, Departures and the Robb Report, the latter of which includes an iPad video ad.

We are also advertising in outlets that reach key niche markets, such as Golf World and Scuba Magazine and important titles that reach the influential meetings and incentive and travel agent trade. These magazines include Prevue, Meetings & Conventions, Successful Meetings, Ignite and Recommend.

From the newspaper side, over the next six weeks, we have 16 newspaper insertions in the market in the top regional and national outlets including: The Wall St. Journal, New York Times, Philadelphia Inquirer, Boston Globe, Washington Post, Atlanta Journal-Constitution and Toronto’s Globe & Mail.

We continue to maximize the digital world as well with efforts in multiple sites that generate more than 29 million impressions. Some examples include digital campaigns with Travel + Leisure, Concierge.com, the New York Times, The Wall St. Journal, PGA.com, Golf Digest, Golf World, Golf.com and Sojern.

Our fruitful relationship with The Boston Red Sox continues as well with Bermuda promoted in-stadium within 7 Red Sox games, as well as 51 New England Sports Network video and audio billboards and 28 Red Sox Game Day live sports.
The Red Sox are currently in a high profile battle with the New York Yankees for first place so their popularity remains extremely high.

We were delighted to learn recently that starting pitcher Tim Wakefield decided to take a well earned rest during the recent all star weekend and did it at one of our very popular resorts.

Our relationship with the CBS Radio Group is particularly exciting and it allows us to take advantage of our greatest asset… the Bermudian People.

Whenever visitors talk about Bermuda they often speak about the warmth and friendliness that Bermudians exude. We therefore have created a special marketing initiative to capitalize on this distinctive strength.

As such, we will very soon have hosts from eight CBS Radio network stations in Boston, New York, Philadelphia and Washington, DC visiting Bermuda in August. While here they will speak with Bermudians about why they love the island and why visitors should come and experience it for themselves.

Each station has heavily promoted Bermuda in advance of their visit, in part through recently pre-recorded sound bites played as part of commercials on-air with 16 representative Bermuda ambassadors.

These Bermudians, who ranged from hoteliers, to taxi drivers and island retailers, were able to share their own personal experiences with millions of listeners in these key markets.

There is also a microsite created called MeetTheBermudians.com where they can see bios and images of our Bermuda ambassadors.

Two of these ambassadors include Mr. Nadanja Bailey and Ms. Muriel Richardson.

We are so appreciative of the time and effort these ambassadors dedicated to this opportunity and it is a great example of how Bermudians can work together with the Department of Tourism to help promote our destination. As you can see and hear this is a great partnership that we will use to drive visitors to the island.

To complement our aggressive advertising efforts, we are working hard in the interactive arena as well. Our recently launched Endless Summer program is being promoted online in a series of five flash advertisements which complement our luxury branding flash banner ads.

As the world’s social interaction continues to grow on the Web, Bermuda is at the forefront with regular, frequent postings on our Facebook, Twitter and YouTube pages.

We have posted on everything from events such as Harbour Nights, Bermuda Nights, Colour the Sky Kite Festival, Billfish Tournament and Marion to Bermuda Yacht Race, to our Endless Summer offer and Feel the Love Rewards programme.

On the subject of Feel the Love Rewards, I am excited to report that in the 12 months since we’ve launched this programme, we have 149 ambassadors, including 62 Bermudians, who have signed up to date. Over 100 of these ambassadors have signed up since my YouTube video in mid April.

These ambassadors are responsible for sending more than 2,000 land-based visitors to our shores with another 900 due to travel by the end of October 2011.

We started this programme as an extra incentive for both Bermudians and friends of Bermuda to assist in bringing business to our hotels and we are encouraged by the results.

I would like to say a special thank you to our two top-producing Bermudian Feel the Love Rewards ambassadors:
Mr. Seamus Durkin, who has sent 57 visitors to Bermuda to date, and Mrs. Annette Marshall, who has sent 47 visitors to date.

Many thanks to them both!

Our new web site, www.gotobermuda.com also continues to be a strong tool for selling the destination. Among the content recently updated on the site includes: bi-weekly updates of WestJet’s service to Bermuda; updates to the 2011 PGA Grand Slam of Golf; enticing new images to our home page; inclusion of our “Sizzling Summer” brochure and events, our aforementioned Endless Summer offer and information on our exciting new iPhone app launch.

On that topic, I am happy to report that in the five weeks since launching the app it has been downloaded by more than 1,900 consumers. This is a very positive sign and is in keeping with the good news we are experiencing online with our new website.

As previously reported, traffic to our website has increased 18% over the past fiscal year with more than 1.2 million visits to the site. People have noticed the difference and it shows.

North American journalists also continue to take notice of Bermuda. As we all are aware, to know Bermuda is to love Bermuda and we are working hard to bring journalists down to the island to experience it for themselves and go back home to share the good news with their audience.

We’ve recently hosted a group of regional journalists from Atlanta in support of the AirTran air service from the market. These included contributors to such outlets as the Atlantan, Daily Candy Atlanta, Go magazine, Simply Buckhead and Upscale magazine. Additional outlets recently hosted included Maxim Canada and the highly trafficked MSN.com.
This effort will continue this month as well with visits planned from such outlets as the Chicago Sun Times, enRoute magazine, South Maryland Woman and Links magazine.

We will also be hosting a group of four journalists in conjunction with the fun events surrounding Cup Match.

We are spreading the word on our events and offerings through our PR efforts as well with communiqués to the media on the Sizzling Summer and Endless Summer promotions, The PGA Grand Slam and our iPhone APP, among other things.

I am happy to report that, already, our Endless Summer programme has been covered in hundreds of outlets across North America including Yahoo Finance, The Boston Globe, Miami Herald, NY Daily News, Toronto Globe & Mail, Montreal Gazette and many, many more.

This opportunity for editorial endorsement is invaluable in building word-of-mouth buzz.

In the days and weeks ahead, we’ll be promoting upcoming events such as the Bermuda Beach Tennis Tournament, Bermuda International Sand Sculpture Competition, World Rugby Classic and She Rox Bermuda Women’s Triathlon, among others.

We are taking the Bermuda tourism message directly to the public as well with combined guerrilla PR and sales efforts such as what recently took place in the Lenox Square Mall in the affluent Buckhead section of Atlanta.

Our PR and sales representatives were on site this past weekend to engage hundreds of consumers with Bermuda collateral, steel pan music, and the opportunity to win a trip to our shores. The effort was supported by a live appearance by radio partners from Atlanta’s popular DAVE-FM, via our relationship with CBS.

We are also planning promotional events to kick off in Baltimore over the next two months, including a partnership with the extremely popular National Aquarium and Power Plant Live, the premier entertainment facility in Baltimore’s upscale Inner Harbor. Also currently in the market in New York City is a partnership with the New York Golf Center to pre-promote the PGA Grand Slam of Golf.

Our sales team has worked closely with our marketing partners in all of these efforts and continues to aggressively outreach to influencers who can directly impact business to Bermuda.

The team kicked of an Endless Summer sales blitz in June that will carry through in our key markets of New York, New Jersey, Georgia, Maryland and Washington DC, as well as Charlotte and Boston. We recently renewed our partnership efforts with LibGo, one of the top travel agency entities in North America, by hosting a Bermuda reception in New York last month. Bermuda was extremely well received and the agents were appreciative of the opportunity to learn more about how they can effectively sell the destination.

I would like to extend my thanks once again for the opportunity to share our activities and also to thank all of our partners, both here on island in the tourism community, as well as abroad. It is my firm belief that, with our collective efforts, we will succeed in helping Bermuda receive the business and attention it deserves.

The Department has also quietly implemented an extremely creative partnership with the hotels, through the organization the Bermuda Alliance for Tourism, – called the ‘Tourism Fund’. Since October 2010 hotels have levied an additional 2.25% occupancy tax and are using this levy to build a marketing fund.

The BAT Board of Directors, comprising 6 public and 7 private sector individuals, meet to determine tactical marketing programs for the member hotels. Eighteen (18) hotels have already signed up as participants. The Board of Directors is co -chaired by the Chairman of the Bermuda Hotel Association and the Director of Tourism.

Government has committed matching funds of $750, 000 for joint marketing programs for this fiscal year 2011/12.
The destination promotion, Endless Summer, launched on July 1st, 2011 with an extensive media blitz is one such example of the success of the Fund.

The promotion is based on a $400 friends fly free air credit from major Northeast gateways. This promotion is geared specifically for travel in the challenging September / October / November period.

This Fund was developed to allow all hotels to have the ability to raise marketing funds for themselves and to have direct input into how their individual properties are being marketed. I have great hopes that this Fund goes from strength to strength and becomes a solid, supplementary, marketing effort to what the BDOT is doing.

I urge hotels to see this as a wonderful opportunity to lessen the dependency on the department to determine their individual marketing destinies of their product, and to take full advantage of this unique partnership.

Ladies and gentlemen, I would now like to touch on key events in the Promotional Services and Events that occurred in the Second Quarter and also some very interesting upcoming new initiatives. The second Quarter was a continuation of Bermuda’s year round sport tourism calendar of events with the Bermuda Open Volleyball Tournament which took place April.

This six-on-six indoor competition saw visiting teams take on Bermuda’s best. Unfortunately for our local squads, both the men’s and women’s teams from Toronto took away top honours from the tournament.

The competitors from this tournament were left longing for more time on the island which has convinced the Bermuda Volleyball Association to partner with the Bermuda Beach Tennis Tournament, to hold a weekend of summer beach sports, The Bermuda Beach Smash, which will take place at Horseshoe Bay August 26-28.

The beautiful weather in May welcomed sailors from the US, Canada and the UK to the Bermuda International Invitational Race Weekend sailing regatta.

The warm sunshine, and great winds, made for a week of competitive racing and even more fierce social activities on shore. Race organizers are already planning for the 2012 edition of this regatta to make it bigger and better.

Bermuda also played host to the Charleston Bermuda ocean yacht race in May, which featured one of the biggest names in comedy, Stephen Colbert from Colbert Nation on Comedy Central, laying down a challenge to all sailors to take his self proclaimed title of world’s best sailor away from him.

Mr. Colbert’s endeavours definitely raised the awareness of our island and will surely have lasting impressions for his many followers.

In June we hosted the Marion to Bermuda Yacht Race, The Cruising Club of America’s Bermuda Station Cruise, The Bermuda Fly Fishing Invitational and the Bermuda Release Cup.

The total of all of these events brought hundreds, if not thousands of people to our shores, pumped millions of dollars into our economy and kicked off a summer full of activity on the island.

Turning to golf, after a wet and windy weekend in the UK, Darren Clarke emerged the victor of the British Open and earned his spot in the 2011 PGA Grand Slam of Golf.

He will join fellow Northern Irishman Rory McIlory and Masters Champion Charl Schwartzel at Port Royal Golf Course October 17-19.

The field for Bermuda is nearly set, with just the PGA Championship remaining.

On the entertainment front, as the BDOT looks to host it fourth Bermuda Nights event, we are extremely pleased with the local and visitor attendance thus far.

As we’ve featured some of Bermuda best local entertainers such as Prestege, Working Title, Sia Spence and the HomeGrown Band, Bermuda Nights has definitely been an outdoor event that has fused our visitors with our locals.

With 7 Bermuda Nights events remaining, I encourage all locals to come out to Barr’s Bay Park and share with our visitors information on this new entertainment initiative that features Bermuda’s best local artists, a exciting cultural performance and great island cuisine. The remaining Bermuda Nights dates will be July 23, August 6 & 20, September 3 & 17 and October 1 & 15.

Designed to enhance our visitors adventures around the island, our Sizzling Summer Programme incorporates a series of FREE activities from Monday – Sunday for our visitors to enjoy.

From street festivals, cultural demonstrations, walking tours to nightlife offerings… these added value offerings truly add to our visitors experience on island.

Ladies and gentlemen as we gear up for our two day holiday next week, we are pleased to announce a new initiative titled, Cup Match Summer Splash aimed at branding together four exciting key offerings taking place over the holiday weekend for our visitors.

New this year is the Visitors Tent at BeachFest. BeachFest which will be held at Horseshoe Bay Beach on Thursday, July 28 will feature a series of local and overseas artists, beach games and competitions. It is being billed as the ultimate beach event of the summer.

The BDOT will host a Visitors’ tent where guests can relax and enjoy live musical performances and various beach activities scheduled throughout the day. Upon the presentation of a room or cabin key card, visitors will receive a complimentary Rum Swizzle.

The BDOT in partnership with the BHA will once again host a Cup Match Visitors’ Stall where visitors can sit back, relax and enjoy complimentary refreshments while watching Bermuda’s most festive cricket event.

The BDOT will host two great boat cruises for hotel guests wishing to experience Bermuda’s best hospitality during the 2011 Cup Match holiday weekend.

Visitors can enter to win two (2) FREE e-tickets onboard the Visitors’ Sunset SwizzleCruise on Saturday July 30 or Non-Mariners Visitors’ Cruise on Sunday July 31.

The first 80 visitors (over the age of 18 years) can enter to win, all information can be found on Bermuda Tourism’s FaceBook page.

Ladies and gentlemen, I now turn your attention to report on the excellent work of the Bermuda Hospitality Institute.

I am equally excited to announce that Muriel Richardson, General Manager of Rosedon Hotel, was appointed to the Bermuda Hospitality Institute’s (BHI) Board to replace Norm Mastalir, and she voted in as Chair as of July 15th, 2011.

I am thrilled to have someone with Muriel’s expertise and passion to lead the organization at this crucial time in its existence. Subcommittees formed of members from throughout the industry have been meeting regularly to provide input and help develop the many programs BHI is undertaking this year.

These include a pilot hospitality program being introduced in primary and middle schools; an expanded 2nd annual Hospitality Career Fair and Expo; the Membership program; expansion of the START program and more.

As of July 1, 17 Bermudian high school students took –up positions throughout Bermuda’s Hospitality Industry, a result of their participation and completion in START.

START (Skills, Tasks & Results Training) began on March 8 and ended May 14th, was held at the Bermuda College, which partnered with BHI through the complimentary use of its facilities.

The program, taught by instructors Shawn DeShields, Hospitality/Business Senior Lecturer, Bermuda College, and Joann Adams, Director Staff Development, Berkeley Institute, provided a quality career based educational experience that prepared each student for the vast opportunities available in hospitality industry.

Their successful completion guaranteed each student full-time summer employment within the Island’s hospitality industry at one of the many hotels and restaurants who committed to holding positions open for them. After 90 days on the job, students are able to be certified in one of the program’s internationally recognized areas of certification.

Ladies and gentlemen, as a non-profit organization, BHI was created to be a private/public sector partnership through which the Hospitality industry and the community at large connect.

To this end, the organization has undertaken the next step in its evolution by creating a sustainable funding model from which it can fund its educational programs, and promotional and outreach events.

Over the coming weeks, BHI will introduce its Membership Plan which is open to all who recognize that a healthy and vibrant Hospitality industry is fundamental to the overall economic success of Bermuda and its people.

The ultimate goal is to ensure an income stream that balances grants, membership fees and fees for services while making the most of community-wide partnerships.

On Thursday August 11th, from 5.30-7.30pm BHI will host a Hospitality Round Table Networking Event for college students at the Fairmont Hamilton Princess. The goals for this event are two-fold:

Demonstrate the passion and commitment required to be successful in the hospitality industry.

Share first-hand accounts of the challenges and rewards that come with a career in the industry.

Students will come face-to-face with top industry professionals in an intimate setting that allows small group discussions and promotes the teamwork that is at the heart of every hospitality business. Industry representatives include business owners, executives, and senior management from all sectors of the hospitality industry.

This is a GREAT opportunity to provide a true picture of the industry for students who typically get their information from sources other than those directly involved.

Ladies and gentlemen, I began my report indicating that I am encouraged by the modest gains made in our visitor arrivals for the first six months of the year and have gone to highlight the numerous activities and programmes that assist in making this happen.

It would however be remiss of me not to acknowledge the hard working Bermuda Department of Tourism team in Bermuda and the Global Operations team in New York, the committed partners of the Bermuda Hotel Association and its members, the dedicated employees at our hotels and guest houses as well as all those in the Hospitality industry who represent Bermuda overseas and locally and continue to work passionately, professionally and oft-times thanklessly to revitalize our Tourism Industry one modest step at a time.

I wish to use this opportunity, as the Minister to say a big thank you, to all of those who have contributed to the progress being achieved.

Thank you for your kind attention.

The full 13-page report is below, click ‘Fullscreen’ on bottom for greater clarity:

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